In New York’s Times Square, there are probably more ads per square foot than anywhere in the world. So it only seems appropriate that Guy Adami should be standing in Times Square to tell investors about the sea change taking place right now in advertising. This sea change is all about you!
Guy says the ad model is evolving by the second ... and it's all because people like you are changing habits faster than anyone thought possible. As you TiVo episodes of "24" or watch them through iTunes or on YouTube, TV networks such as Disney (DIS) and Viacom (VIA) are battling to secure just a few seconds of your attention span.
And if you are reading this right now, chances are you get more and more of your news online and from blogs, leaving old media publishers such as Tribune (TRB) entertaining offers to sell themselves to private equity as they face yet another year of declining ad spending in their papers.
And if you want evidence of the migration of ad spending to online consider this: Microsoft (MSFT), the world's largest software company, recently revealed it will eventually spend its $1 billion advertising budget on just internet advertising.
But, not all old media is lost. You are smart, and you fast forward through these ads. That why billboards and billboard stocks are today’s contrarian pick in this sea change.
Guy Adami tells the guys that his play is digital billboards. In the space Guy believes the winners will be Lamar Advertising (LAMR) and a company called Daktronics (DAKT) which makes scoreboards and digital displays.
The other winners are Yahoo! (YHOO) and Google (GOOG) because $26 billion will be spent on on-line advertising. It was a $0 dollar industry 5-10 years ago.
Jeff Macke agrees that the content guys will win. He says the holy grail is personalized advertising, which no one has solved yet.
Eric Bolling adds that Google knows who’s watching what on their site – and they can sell to extremely targeted, niche audiences.